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===== Concept =====



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Through the course of business you're likely to encounter a case or two where you received a check from a client and through the course of business you need to refund them. If you are using an accounting system such as QuickBooks recording this refund check and ultimate reduction of your bank account balance can be a little challenging. During this How-To we will look at how to best handle these cases so that everything is recorded properly in SMS and QuickBooks.
  * Create a new Payment Account Type in SMS named **QB Refund**. 
    * Set the External Description Name to **QB Refund**. 
  * Create a new Current Asset account in QuickBooks named **QB Refund**
  * Refund the payment on the order in SMS instead of voiding the payment. This is done so that during the refund process you can select to refund from QB Refund. This will cause the export to QuickBooks to post a credit entry to the QB Refund account in QuickBooks.



===== Steps =====



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==== Creating the QB Refund Payment Account Type ====
  - Open SMS
  - Navigate to Mgmt > Accounting > Setup > Account Types.
  - Click on Add Group and specify a group name of QB Refund.
    - Payment Method: QB Refund
    - Export Description: QB Refund
  - Click Save to create the payment account type.



==== Processing the QB Refund Payment (Refund instead of Void) ====
  - Open SMS
  - Click on the Payments button on the top toolbar. 
  - Locate the order or company you wish to refund.
  - Process the refund using the information below.
    - Refund Amount: Enter the amount of the refund.
    - Payment Account: QB Refund
    - Reason: An appropriate reason you'll understand if you re-read it 2 weeks or 2 months from now. 
  - Click OK to process the refund.



==== Exporting to QuickBooks ====
  - Export to QuickBooks at the end of your day using the standard daily closeout process.
  - When you import into QuickBooks you should notice the balance of the QB Refund account has been adjusted. You can then create a manual journal entry in QuickBooks to transfer this money to any other account of your choosing. 



===== Source =====



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Contributor: Brandon R, Cyrious Software, Inc.



Date: 9/11/2014



Version: SMS